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5.10 SOCIOECONOMICS <br /> could choose to live within the City of Lodi or within the county. However,the new <br /> demand for housing would not be significant. <br /> 5.10.3.4.4 Impacts on the Local Economy and Employment <br /> LEC operation will generate a small,permanent,but less than significant beneficial impact <br /> by creating secondary employment opportunities for local workers through local <br /> expenditures for materials, such as office supplies and services. There will be an annual <br /> operations and maintenance budget of approximately$3.5 million, of which$2.2 million is <br /> assumed to be spent locally, (i.e.,within San Joaquin County). These additional jobs and <br /> spending will generate other employment opportunities and spending in the San Joaquin <br /> County area. All cost estimates are in constant 2008 dollars as are the economic benefits <br /> noted in this section. <br /> Indirect and Induced Economic Impacts from Operations <br /> The operation of the project would result in indirect and induced economic impacts that <br /> would occur within San Joaquin County. These indirect and induced impacts represent <br /> permanent increases in the county's economic variables. The indirect and induced impacts <br /> would result from annual operations and maintenance (O&M) expenditures. <br /> Estimated indirect and induced employment within San Joaquin County would be 7 and <br /> 5 permanent jobs,respectively. These additional 12 jobs result from the$2.55 million <br /> ($350,000 in payroll,and$2.2 million in operations and maintenance) in annual local <br /> operational budget. The operational phase employment multiplier is estimated at 3.4 <br /> (i.e., [5 + 7+5]/5) and is based on a Type SAM multiplier. <br /> Indirect and induced income impacts are estimated at$420,110 and$177,140,respectively. <br /> The income multiplier associated with the operational phase of the project is approximately <br /> 1.2 (i.e., [$2,550,000 + $420,110+ $177,140]/$2,550,000) and is based on a Type SAM model. <br /> 5.10.3.4.5 Fiscal Impacts <br /> The annual operations and maintenance budget is expected to be approximately$3.5 million <br /> (in 2008 dollars),of which$2.2 million is assumed would be spent locally within San <br /> Joaquin County. <br /> During operations, additional sales tax revenues will be obtained by the San Joaquin <br /> County. O&M expenses spent locally will be approximately$2.2 million annually. Based on <br /> the assumed local O&M expenditures of$2.2 million,the estimated sales taxes will be$170, <br /> 500. Of this amount,the place of sale will receive$27,500 in sales tax revenue. The overall <br /> anticipated increase in sales tax revenue will be beneficial but will not be significant, since it <br /> would constitute such a small percent of total County revenues. (All estimates are in 2008 <br /> dollars). <br /> LEC is not expected to pay property taxes since the City of Lodi is one of the Northern <br /> California Power Agency (NCPA) project participants for the LEC project. <br /> 5.10.3.4.6 Impacts on Education <br /> The schools in the Lodi Unified School District are operating at or near capacity (Brum, <br /> 2008). However,there are plans in place to deal with these over capacity issues. Even <br /> assuming that all 5 operational employees will reside within the City of Lodi,LEC operation <br /> is not expected to create any significant adverse impacts to the local school system. <br /> SAC/371322/082330013(LEC_5.10_SOCIOECONOMICS.DOC) 5.10-19 <br />